We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Agilent (A) Beats on Earnings and Revenue Estimates in Q3
Read MoreHide Full Article
Agilent Technologies’ (A - Free Report) fiscal third-quarter 2018 earnings of 67 cents per share came in above the Zacks Consensus Estimate by 4 cents. Earnings increased 14% year over year.
Agilent’s fiscal third-quarter 2018 revenues of $1.203 billion increased 8% year over year. Revenues were within management’s guided range of $1.185-$1.205 billion and above the Zacks Consensus Estimate of $1.195 billion.
The year-over-year revenue growth was supported by strong improvement across all its product lines and regions.
Notably, the company’s shares have declined 12.2% in the past year, underperforming the industry’s growth of 14%.
Revenues by Segment
Agilent has three reporting segments — Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG) and Diagnostics and Genomics Group (DGG).
In the reported quarter, LSAG was the largest contributor and accounted for $540 million or 45% of the total revenues, reflecting an increase of 6% from the prior-year quarter. This was driven by strong performances in the Pharma and Chemical and Energy markets.
Revenues from ACG came in at $426 million or 36% of total revenues, reflecting an increase of 10% year over year. Both services and consumables witnessed growth across all geographical regions.
Revenues from DGG came in at $237 million and accounted for the remaining 19% of total revenues. The segment was up 9% from the year-ago quarter, led by strength in genomics.
Operating Results
The pro-forma gross margin in the quarter was 56.7%, up 130 basis points (bps) sequentially and 160 bps year over year.
Operating expenses (research & development and selling, general & administrative expenses) were $436 million, 10.4% higher than the year-ago quarter.
As a result, adjusted operating margin was 22.3%, up 60 basis points (bps) sequentially and 110 bps year over year.
Balance Sheet
Upon exiting the fiscal third quarter, inventories totaled $623 million, reflecting an increase up from $594 in the prior quarter. Agilent’s long-term debt was $1.8 billion at the end of the quarter. Cash and cash equivalents were $2.1 billion compared with $3.01 billion in fiscal second-quarter 2018.
Net cash provided by operating activities was $197 million and capital expenditure totaled $33 million.
In the reported quarter, the company paid $48 million in dividends. There was no share repurchase activity during the period.
Guidance
Agilent provided guidance for fiscal fourth-quarter 2018.
Agilent expects revenues between $1.24 billion and $1.26 billion and earnings per share in the range of 72-74 cents for the fiscal fourth quarter. The Zacks Consensus Estimate is $1.26 billion for revenues and 73 cents earnings per share.
For fiscal 2018, Agilent projects revenues in the range of $4.86-$4.88 billion and earnings per share within $2.69-$2.71.
The Zacks Consensus Estimate is earnings of $4.88 per share and revenues of $2.67 billion.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Long-term earnings growth for Expedia, Infineon Technologies and Rambus is currently projected to be 16.1%, 7.5% and 10%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Agilent (A) Beats on Earnings and Revenue Estimates in Q3
Agilent Technologies’ (A - Free Report) fiscal third-quarter 2018 earnings of 67 cents per share came in above the Zacks Consensus Estimate by 4 cents. Earnings increased 14% year over year.
Agilent’s fiscal third-quarter 2018 revenues of $1.203 billion increased 8% year over year. Revenues were within management’s guided range of $1.185-$1.205 billion and above the Zacks Consensus Estimate of $1.195 billion.
The year-over-year revenue growth was supported by strong improvement across all its product lines and regions.
Notably, the company’s shares have declined 12.2% in the past year, underperforming the industry’s growth of 14%.
Revenues by Segment
Agilent has three reporting segments — Life Sciences & Applied Markets Group (LSAG), Agilent Cross Lab Group (ACG) and Diagnostics and Genomics Group (DGG).
In the reported quarter, LSAG was the largest contributor and accounted for $540 million or 45% of the total revenues, reflecting an increase of 6% from the prior-year quarter. This was driven by strong performances in the Pharma and Chemical and Energy markets.
Revenues from ACG came in at $426 million or 36% of total revenues, reflecting an increase of 10% year over year. Both services and consumables witnessed growth across all geographical regions.
Revenues from DGG came in at $237 million and accounted for the remaining 19% of total revenues. The segment was up 9% from the year-ago quarter, led by strength in genomics.
Operating Results
The pro-forma gross margin in the quarter was 56.7%, up 130 basis points (bps) sequentially and 160 bps year over year.
Operating expenses (research & development and selling, general & administrative expenses) were $436 million, 10.4% higher than the year-ago quarter.
As a result, adjusted operating margin was 22.3%, up 60 basis points (bps) sequentially and 110 bps year over year.
Balance Sheet
Upon exiting the fiscal third quarter, inventories totaled $623 million, reflecting an increase up from $594 in the prior quarter. Agilent’s long-term debt was $1.8 billion at the end of the quarter. Cash and cash equivalents were $2.1 billion compared with $3.01 billion in fiscal second-quarter 2018.
Net cash provided by operating activities was $197 million and capital expenditure totaled $33 million.
In the reported quarter, the company paid $48 million in dividends. There was no share repurchase activity during the period.
Guidance
Agilent provided guidance for fiscal fourth-quarter 2018.
Agilent expects revenues between $1.24 billion and $1.26 billion and earnings per share in the range of 72-74 cents for the fiscal fourth quarter. The Zacks Consensus Estimate is $1.26 billion for revenues and 73 cents earnings per share.
For fiscal 2018, Agilent projects revenues in the range of $4.86-$4.88 billion and earnings per share within $2.69-$2.71.
The Zacks Consensus Estimate is earnings of $4.88 per share and revenues of $2.67 billion.
Agilent Technologies, Inc. Price, Consensus and EPS Surprise
Agilent Technologies, Inc. Price, Consensus and EPS Surprise | Agilent Technologies, Inc. Quote
Zacks Rank and Other Stocks to Consider
Currently, Agilent has a Zacks Rank #2 (Buy). Some other stocks worth considering in the same industry are Expedia Group, Inc. (EXPE - Free Report) , Infineon Technologies AG (IFNNY - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Expedia, Infineon Technologies and Rambus is currently projected to be 16.1%, 7.5% and 10%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>